Market Overview

Why Needham Likes Cloud Stock Anaplan In 2021

Share:
Why Needham Likes Cloud Stock Anaplan In 2021

Cloud-based software stocks have done well amid the work-from-home and study-from-home environment necessitated by the COVID-19 pandemic in 2020.

Despite the pricier valuation of the category, an analyst at Needham picked one of the stocks as a recovery play in 2021.

The Anaplan Analyst: Needham analyst Scott Berg has a Buy rating on Anaplan Inc (NYSE: PLAN) shares and hiked the price target from $85 to $95.

The analyst also named Anaplan as Needham's 2021 best idea and added it to the firm's Conviction List.

Related Link: Zscaler, CrowdStrike Hit New Highs After Stellar Quarters: What The Sell-Side Says

The Anaplan Thesis: Demand for Anaplan's Planning platform is set to climb in 2021 amid efforts by companies to free up time and resources to replace legacy solutions that were ill-equipped to deliver business data during the most critical time periods in the pandemic, Berg said in a Monday note.

Due to frustrations with existing planning technologies and processing, companies are now increasingly looking up to modern planning solutions such as that of Anaplan, the analyst said. 

While 2020 was more about upsell, 2021 will see the return of new logo growth, he said.

"We believe the improving demand will combine with a more profitable operating model and a compelling valuation (following a year of relative underperformance) to set up PLAN shares for outperformance versus our broader universe in 2021." 

PLAN Price Action: At last check, Anaplan shares were advancing 1.24% at $73.62. 

Related Link: Why This Wedbush Analyst Expects A Year-End Tech Rally

Latest Ratings for PLAN

DateFirmActionFromTo
Jan 2021William BlairInitiates Coverage OnOutperform
Jan 2021JefferiesUpgradesHoldBuy
Jan 2021Piper SandlerUpgradesNeutralOverweight

View More Analyst Ratings for PLAN
View the Latest Analyst Ratings

 

Related Articles (PLAN)

View Comments and Join the Discussion!

Posted-In: cloud Needham Scott BergAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
GSCitigroupMaintains370.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com